Why don't they launch BMW 123D in India?

This is a discussion on Why don't they launch BMW 123D in India? within The Indian Car Scene, part of the BHP India category; For those people complaining about the response in the Skoda thread here that is totally out of context. Skoda and ...

For those people complaining about the response in the Skoda thread here that is totally out of context. Skoda and BMW cannot be compared. The target markets for both vehicles are dramatically different. The BMW is a niche, refined and sophisticated product in all markets as it will be here if launched. The Skoda is a mass market product with pretensions to other things here.

Mentalities are changing. A five years back a market for the Swift, U-VA and Getz category of "hatches with features of sedans" did not exist, and was even considered to be ridiculous. It does exist now. However, at this rate we should be about 15-20 years before Indians spend 20L on a hatch. Right now a market for the SRV itself is quite not there.

On the other hand, let us consider the case of Rome. Quite the same as the situation in Mumbai. Roads aren't expanding, but cars are growing at an exponential rate and parking space, even at present, is relatively easy to find only if you're on a bike. Thus, the people of Rome prefer to have a hatch at home, even if they have far more expensive and larger cars lying around. In the not too distant future, Mumbai will be pretty much in the same situation [imo we're already there] where people will finally have a hatch around for regular runabout even if they have larger premium cars. And it is these people who will prefer, I think, to buy a hatch wwhich is high-specced and stands for quality as well as a fair bit of brand image going for it.

Mentalities are changing. A five years back a market for the Swift, U-VA and Getz category of "hatches with features of sedans" did not exist, and was even considered to be ridiculous. It does exist now. However, at this rate we should be about 15-20 years before Indians spend 20L on a hatch. Right now a market for the SRV itself is quite not there.

On the other hand, let us consider the case of Rome. Quite the same as the situation in Mumbai. Roads aren't expanding, but cars are growing at an exponential rate and parking space, even at present, is relatively easy to find only if you're on a bike. Thus, the people of Rome prefer to have a hatch at home, even if they have far more expensive and larger cars lying around. In the not too distant future, Mumbai will be pretty much in the same situation [imo we're already there] where people will finally have a hatch around for regular runabout even if they have larger premium cars. And it is these people who will prefer, I think, to buy a hatch wwhich is high-specced and stands for quality as well as a fair bit of brand image going for it.

Anyone agree with my POV ?? cheers:

I do flyingspur. One doesn't have to look into the future. The small car for urban driving is something that people are beginning to appreciate already. I sold an Esteem and bought a Santro AT as a second car runabout. I love the size and ease of use.

Sometimes I wish I could have bought a better car but the choices in automatics were limited.

My other car is a City that I use with a driver mostly. I foresee my future car buying decisions being based around the same logic: One largish car to carry 5 in comfort, highway driving and when using a driver. One small, easy to use car for personal urban driving for 1-2 people . I just see the cars getting better within those two sizes.

PUNE: Luxury car manufacturer BMW India is conducting a market study on the feasibility of a small car in the luxury segment. “We have not decided on our plans for small cars in India... but are conducting a study to analyse the market,” BMW India president Peter Kronschnabl told reporters.

“Our small cars cost Rs 10 lakh overseas. Importing them here will increase the price by more than 100%. We are not sure whether a small luxury car with such a pricing will work in India,” he added.

The BMW study is scheduled to be completed over the next three months, after which the company would decide whether to introduce the small car in India or not. “We are pretty upbeat about the market in India and have invested around Rs 110 crore so far,” Mr Kronschnabl added.

BMW is targeting the top position in India in the luxury car segment over the next three to five years and has decided to focus on the Indian market. It has no plans of exporting the BMW 3 and BMW 5 series cars manufactured at its Chennai plant.

The company is also planning to increase its dealerships to 12 by 2009, having opened a ninth dealer outlet in Pune in partnership with the Pune-based auto retailer Bavaria Motors. “There is a good potential for luxury cars in India. While the total car market in India was growing at 16%, luxury car market is growing at more than 50%.

There are close to 3,500 luxury cars in India now and 2008 will add almost 4,500 luxury cars in India. We aim to achieve the top position in this booming market,” said Mr Kronschnabl. BMW India will also focus on increasing India’s share in sourcing components for its global branches.

“We have set up an international purchasing office at our headquarters in Gurgaon,” Mr Kronschnabl added. The existing team would be expanded to 10 members. The purchasing office will explore opportunities for sourcing components from India. Although the company hasn’t finalised any plans for sourcing, it would focus on procurement of production components as well as IT and engineering services, Mr Kronschnabl added.